| Mutual funds can be defined as collective | | | | the manager has to be paid handling charges. |
| investments that bring together money from | | | | These are basically the management fees. On the |
| many different investors into a common pool, | | | | other hand there are non-management fees |
| which is then professionally managed. The money | | | | which include a number of other things. Back to |
| is invested in other types of securities that | | | | the management fees, there are administrative |
| attract interests, which are then divided among | | | | charges, advisory charges and contractual charges |
| the stakeholders. The investments come in many | | | | that are all payable regardless of the type of |
| different types, which include cash instruments, | | | | investment one has. The non management fees |
| stocks, bonds and money market funds. | | | | are on the other hand are not related to the |
| Mutual funds come in many different types | | | | management of the mutual funds but they all go |
| according to the type of risk they carry, that is | | | | towards making your investment worthwhile. |
| either high or low risk, the length of time they | | | | They include transfer agent expenses, custodian |
| take to mature, the type of insurer and also | | | | expense, registration expense, board of directors |
| depending on whether they are local or foreign. All | | | | or trustees expense, accounting and auditing fees |
| these sub-categories are key in determining the | | | | as well as printing and postage fee for processing |
| amount of return or interest that they attract | | | | the reports for investors. There are also the |
| and also the regulatory terms they are subject to | | | | investor fees and expenses which are incurred if |
| as far as taxes and accounting are concerned. | | | | an investor chooses to invest through a broker. |
| These investments also incur expenses because | | | | These will entail even the brokerage commissions. |